Manatee schools audit shows district's turmoil

Published: Friday, February 1, 2013 at 5:20 p.m.

Last Modified: Friday, February 1, 2013 at 5:20 p.m.

BRADENTON - A Manatee County School Board member pressured former superintendent Tim McGonegal to quit after he learned about the district’s $3.4 million deficit, according to more than 16,000 pages of documents released Friday that shed new details on the final months of McGonegal’s tenure.

Facts

Read the audit

At a Sept. 10 meeting last year, member Robert Gause — a former McGonegal supporter who “infrequently” hunted or golfed with him and regularly met with him before board meetings — told the superintendent to resign immediately.

“Gause told McGonegal that he would recommend McGonegal’s resignation to the board ‘even if McGonegal had solutions for the FY12/13 budget,’ ” the firm Navigant wrote after interviewing them both as part of the forensic audit.

The audit’s working papers — these include financial records, emails and interview notes from McGonegal, board members and other district employees — were released on the district’s website Friday evening.

About three weeks ago, Navigant presented a final report detailing Manatee schools’ lack of oversight, shoddy accounting software and a budget full of mistakes. Inaccurate employee payroll information and major programs left out of the budget were among other financial problems, although there was no proof of embezzlement, the audit said.

School officials said Friday they did not want to comment until they had digested the documents.

In his Navigant interview, McGonegal said he asked Assistant Superintendent Jim Drake to leave after Drake made several mistakes, including being off by $8 million on the fund balance for the 2010-11 school year.

Drake complained he was “living the job, too much stress” so he resigned, he told Navigant in his interview.

Drake retired, unaware of a looming deficit in the general fund, he told auditors.

“He recalled that sometime during FY 11/12 the General Fund balance may be down to $5 million but there was never a concern that there would be a deficit,” the Navigant interview notes said.

But after Drake left on Feb. 29, McGonegal — known for a strong financial background — did not meet with the finance department until spring 2012.

McGonegal’s “oh boy” moment occurred Aug. 2 when the general fund deficit was projected at several million dollars.

McGonegal thought he would find a solution in two or three weeks, so “he instructed staff not to tell anyone as it was his responsibility to tell the Board,” he said in a Navigant interview.

But McGonegal said he had health problems, which started with migraines in June and progressed to him being “physically a mess” in July. The superintendent collapsed at a meeting and went to get medical tests in August, Gause told Navigant.

Two school board meetings passed without McGonegal bringing up the deficit, board president Karen Carpenter said. Gause was re-elected to his seat on Aug. 14.

On Sept. 5, McGonegal warned Gause about the deficit — the first time a school member was aware how serious the financial troubles were. The other board members were told over the next several days.

Gause was “shocked” while board members Harry Kinnan, who has since retired, was “professional” and Carpenter “seemed happy, vindicated about results. She had supported Gause’s opponent,” Navigant wrote after talking with McGonegal.

Shortly after, McGonegal announced he would retire in February but then changed his mind and stepped down sooner on Sept. 10.

He “decided to resign because Mr. Gause told Dr. McGonegal that he would vote to terminate his contract. The Board had been split on the Superintendent for quite a while but Mr. Gause had supported him,” according to the interview summary.

Following the release of documents Friday, the district plans to move forward in finding McGonegal’s permanent replacement. Board members will interview six candidates on Feb. 11 and 12.

<p><em>BRADENTON</em> - A Manatee County School Board member pressured former superintendent Tim McGonegal to quit after he learned about the district's $3.4 million deficit, according to more than 16,000 pages of documents released Friday that shed new details on the final months of McGonegal's tenure.</p><p>At a Sept. 10 meeting last year, member Robert Gause — a former McGonegal supporter who “infrequently” hunted or golfed with him and regularly met with him before board meetings — told the superintendent to resign immediately.</p><p>“Gause told McGonegal that he would recommend McGonegal's resignation to the board 'even if McGonegal had solutions for the FY12/13 budget,' ” the firm Navigant wrote after interviewing them both as part of the forensic audit.</p><p>The audit's working papers — these include financial records, emails and interview notes from McGonegal, board members and other district employees — were released on the district's website Friday evening.</p><p>About three weeks ago, Navigant presented a final report detailing Manatee schools' lack of oversight, shoddy accounting software and a budget full of mistakes. Inaccurate employee payroll information and major programs left out of the budget were among other financial problems, although there was no proof of embezzlement, the audit said.</p><p>School officials said Friday they did not want to comment until they had digested the documents.</p><p>In his Navigant interview, McGonegal said he asked Assistant Superintendent Jim Drake to leave after Drake made several mistakes, including being off by $8 million on the fund balance for the 2010-11 school year.</p><p>Drake complained he was “living the job, too much stress” so he resigned, he told Navigant in his interview. </p><p>Drake retired, unaware of a looming deficit in the general fund, he told auditors. </p><p>“He recalled that sometime during FY 11/12 the General Fund balance may be down to $5 million but there was never a concern that there would be a deficit,” the Navigant interview notes said.</p><p>But after Drake left on Feb. 29, McGonegal — known for a strong financial background — did not meet with the finance department until spring 2012.</p><p>Around July, he realized the schools' finances looked “funky,” McGonegal told Navigant.</p><p>McGonegal's “oh boy” moment occurred Aug. 2 when the general fund deficit was projected at several million dollars.</p><p>McGonegal thought he would find a solution in two or three weeks, so “he instructed staff not to tell anyone as it was his responsibility to tell the Board,” he said in a Navigant interview.</p><p>But McGonegal said he had health problems, which started with migraines in June and progressed to him being “physically a mess” in July. The superintendent collapsed at a meeting and went to get medical tests in August, Gause told Navigant.</p><p>Two school board meetings passed without McGonegal bringing up the deficit, board president Karen Carpenter said. Gause was re-elected to his seat on Aug. 14.</p><p>On Sept. 5, McGonegal warned Gause about the deficit — the first time a school member was aware how serious the financial troubles were. The other board members were told over the next several days.</p><p>Gause was “shocked” while board members Harry Kinnan, who has since retired, was “professional” and Carpenter “seemed happy, vindicated about results. She had supported Gause's opponent,” Navigant wrote after talking with McGonegal.</p><p>Shortly after, McGonegal announced he would retire in February but then changed his mind and stepped down sooner on Sept. 10.</p><p>He “decided to resign because Mr. Gause told Dr. McGonegal that he would vote to terminate his contract. The Board had been split on the Superintendent for quite a while but Mr. Gause had supported him,” according to the interview summary.</p><p>Following the release of documents Friday, the district plans to move forward in finding McGonegal's permanent replacement. Board members will interview six candidates on Feb. 11 and 12.</p>